The way VAT returns are filed has now changed, as part of Making Tax Digital.
This means you need to keep digital business records, sign up to Making Tax Digital and file all future VAT returns using Making Tax Digital-compatible software.
If you do not file your VAT returns through Making Tax Digital, you may now have to pay a penalty. Even if you currently keep digital records, you must check your software is compatible and sign up for Making Tax Digital.
If you have not signed up to Making Tax Digital yet, you need to do so before you file your next VAT return, otherwise you could receive a penalty.
What you need to do now — 4 steps to sign up
If you have not done this already, then follow these steps today:
- Choose Making Tax Digital-compatible software that’s right for you — you can find a list of software, including free options.
- Check the permissions in your software— once you have allowed it to work with Making Tax Digital, you can file your return easily.
- Find out what digital records you need to keep for your current and future VAT returns.
- Sign up to Making Tax Digital and file your future VAT returns with Making Tax Digital-compatible software.
More information on Making Tax Digital is available here Making Tax Digital.